SERAFIN Diversified Arbitrage
Fund size USD 15.6 Mio.
Past performance is not a reliable indicator of future performance. Please note that the aforementioned performance is shown in the fund currency USD (US Dollar) and not Euro and therefore currency influences in investment currencies other than the fund currency are not taken into account in the performance shown.
The SERAFIN Diversified Arbitrage Fund is a global risk arbitrage fund with daily liquidity. The fund is currently aimed at qualified investors in Switzerland.
The investment approach consists of combining various arbitrage strategies, particularly in the areas of merger arbitrage, convertible bond arbitrage and event-driven soft catalysts. The core of the portfolio is invested in low-risk merger arbitrage transactions and aims to exploit arbitrage spreads in a global universe. Another part of the portfolio is invested in an arbitrage strategy for convertible bonds that aims to exploit price inefficiencies in this asset class and achieve carry. These two investment components are complemented by tactical investments in other risk arbitrage strategies, including spin-offs and holding structures, which provide additional uncorrelated sources of alpha and have the potential to enhance returns and diversify the portfolio.
Portfolio Management
- Jonathan Stanford
- Investment Manager
Alternatives - jonathan.stanford[at]serafin-am.com
- +41 (91) 942 71 71
- Roberto Bottoli, CFA
- Investment Manager
Alternatives - roberto.bottoli[at]serafin-am.com
- +41 (91) 942 71 71
Publications
Two Pager | Alternatives
Breakdown by currencies
Breakdown by countries
Comment April 2024
The M&A market has been rather thin in terms of new deals. The market seems to be showing binary conditions, where few low-risk deals trade at very tight (if not premium, in case a counterbid is plausible) spreads, and all the transactions that present even the slightest anti-trust risk, trade at substantial spreads. This increased focus on anti-trust litigation seems to be overly priced in many of the deals present in the market, and we feel there are opportunities to take as the likelihood of all these deals being challenged is low considering the time and manpower needed for concrete legal action. The biggest announced deal of the month has been, once again, an industrial one: the acquisition of Shockwave Medical by Johnson & Johnson for around USD 12bn. Although private equity is still mostly absent from the market in the big cap space, a sizeable buyout has been struck in April: the acquisition of Endeavor Group for USD 9bn, in the media sector in the US.
The convertible bond primary market has been completely absent in April, compared to Q1 when we had a substantial amount of issuance, particularly in the US. Europe has remained quiet since the beginning of the year. Valuations have had plenty of headwinds during the month, as interest rates have continued to edge higher, and credit spreads wider. Fortunately, there has been a decent amount of volatility in the underlying equities, which has enabled us to trade the deltas and generate some income to mitigate the weakness. We are expecting the primary market to pick up soon, with issuance showing good carry and decent valuations.
| Domicile of fund | Luxembourg |
|---|---|
| Legal form | SICAV (AIF) |
| Investment universe | Global |
| Investment manager | Serafin Asset Management Ltd, Zug |
| Management company (ManCo) | Lemanik Asset Management S.A., Luxembourg |
| Custodian bank | UBS Europe SA, Lux. Branch |
| Launch date | 15.12.2023 |
| Recommended investment horizon | 5 years |
| Reference currency | USD |
| ISIN / Bloomberg-Ticker (respective share class) | USD: LU2718004018 / SEDIARU LX CHF: LU2718003986 / SEDIARC LX EUR: LU2718004281 / SEDIARE LX |
| Distributions | reinvesting |
| Subscription and redemption | daily (cut-off 15.00 CET) |
| Tax transparency | CH, AT |
| Tax status Germany | Investment funds with any subsequent certification |
| Registered for distribution to qualified investors only | CH |
Gebührenstruktur
| Subscription and redemption fee | none |
|---|---|
| Management fee p.a. | Share Class USD: 0.70% Share Class CHF: 0.70% Share Class EUR: 0.70% |
| Profit sharing | A performance fee of 15% of the returns generated above the respective risk free rate (USD SOFR, EUR ESTR, CHF SARON) is charged. |
| Total expense ratio p.a. (per tba; TER) | tba |
| Duration | Fund |
|---|---|
| 1 month | 0.2% |
| 3 months | 0.7% |
| 12 months | - |
| since inception p.a. | 2.8% |
| Year | |
| 2024 | 1.0% |
| 2023 | 0.1% |
| since inception | 1.1% |
The gross performance takes into account the costs incurred at fund level (e.g. management fee) without including the costs incurred at investor level (e.g. front-end load and custody fees). The net performance also takes into account an initial sales charge of 0.00% in the first period under review.